The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1887-12-14

THE SURPLUS.
Referring to the threating char cter of
the surplus. the president says:
This condition of our treasury is not
altogether. new and ii has mere than
once of late been submitted TO the peo-
Piles representatives in congress, who
alone can apply remedy. And vet the
situation still continues with aggravated
incidents, more than ever presagi ng
financial convulsicn, and widespread
disaster.
II will not do to neglect this situation
because its dangers are not now alpably
imminent and apparent. they exist
none the less certainly, and await the
unforeseen and unexpected occasion when
suddenly they will be precipitated upon
us.
On June 80, 1857. the excess of reve-
nues over public expenditures after com
plying with the annual requirement of
the sinking fund act, was Sl7, $50, 1854 /;
during the year ended June 80, 1886,
such excess amounted to $40 ,405, ,545.20 :;
and during the year ended June 30, 1881,
it reached the sum of s55, so ,s49.54
Referring to the measures taken by
the redemption of bonds, to decrease the
surplus, the message continues While
the expedients thus employed to release
to the people the money lying idle in the
treasury, served 10 avert immediate dan
ger, our surplus revenues have continued
to accumulate, the excess for the present
year amounting on December lst TO s55,-
25s. .70l.l9, and estimated 10 reach the
sum of Sll3,000,O0O on June 30th next.
at which date it is expected that this
sum, added to prior accumulations, will
swell the surplus in the treasury TO
sl40O00O0O
There seems to be no assurance that,
with such withdrawal from use of the
peoples circulating medium, our business
community may not in the near future
be subjected 10 the same distress wiiicl,
was quite lately produced from the came
cause And while the functions of our
national treasury should be few and sim-
Pile, and while its best condition would
be reached. believe, by its entire dis
connection with private business inter
ests, yet when, by perversion of its pur-
poses, it idly holds money uselesslessly
subtracted from the channels of trade
there seems to be reason for the claim
that some legitimate means should be
devised by the government TO restore, in
an emergency, without waste or extraya-
gance, such money to its place among
the people.
In the present state of legislation the
only pretense of any existing executive
power to restore, at this time, any part of
our surplus revenues TO the people by its
expenditure, consists in the supposition
that the secretary of the treasury may
enter the market and purchase the bonds
Of the government not yet due, at a rate
of premium to be agreed upon.
In considering the question of purchas-
ing bonds as means Of restoring to cir
culation the surplus money accunIulating
in the treasury, it should be borne in
mind that premiums must of course be
paid upon such purchase, that there may
be large part of these bonds held as
investments viii b cannot be purchased
at any period and that combinations
among holders who ire willing to sell
may unreasonabiy enhance the cost of
such bonds to the government
1t has been suggested that the present
donded debt might be refunded al a less
rate of interest, and the difference be-
tween the old and new security paid in
cash, thus finding use for the surplus il
the treasury. The success of this plan, it
is apparent, must depend upon the voli-
tiun of the holders of the present bombs;
and it il not entirely certain that the in
,lucement which must be offered them
would result in more financial benefit to
the government than the purchase of
bonds, while the latter proposition would
reduce the principal of the deb by
actual payment, instead of extending
it,
The proposition to deposit the money
held by the government in banks throug-
out the country for use by the people is,
II seems to me, exceedingly Objectionable
in principle, as establishing too close a
relationship between the operations of
the government treasury and the busi-
ness of the country, and too extensive
commingling of their money, thus foster
ing an unnatural reliance in private busi-
ness upon public funds. If this scheme
should be adopted, it should only be
done as temporary expedient TO meet
urgent necessity. Legislative and exec
utiye effort should generally be in the
opposite direction, and should have a
tendency TO divorce, as much and as fast
Is can s.lfely be done. the treasury de-
partment from private enterprise.